MLM News

Attracting Top Distributors

Rumors and stories regarding a weakening economy are running rampant. Even the media adds fuel to the fire by alluding to an impending “recession”. Such words send chills down the spines of most, however there are industries that actually prosper during sluggish economic times. Post-secondary education and home-based business industries are two of the biggest beneficiaries.

Due to this threatened “recession”, network marketing companies are expecting to enjoy tremendous growth in the months and years to come. Of course that does not necessarily mean that all companies will enjoy the same prosperity.

The astute and talented network marketer is aware of this and the new breed of network marketing distributor has grown increasingly observant when selecting a company to represent. Distributors are aware of the fact that inaccurate data entry systems and untimely ordering procedures can negatively affect their businesses. Therefore, it is easy to understand why today’s distributor is so very protective of their time and selective of the company they choose to represent.

In recent years we have seen more and more companies fall apart because they simply cannot service and maintain a growing distributor base in a traditional, yet cost-efficient manner. They have enormous overhead brought on by an excessive number of customer service representatives needed to maintain any semblance of a functioning company. Unfortunately, without the aid of available technologies, companies are not operating nearly as efficiently as they need to be and as a result, portions of distributor commissions are often looked at to recoup excessive overhead expenditures. Naturally, distributors then look for greener pastures and when that happens, the company is nothing but in debt.

For companies that refuse to not only recognize, but also embrace such technologies, retribution has been swift and severe. For those that have, prosperity has been unprecedented as they have quickly devoured their less forward-thinking and cost-inefficient competition.

The Internet and related technology has enabled these businesses to become more efficient, accurate and to operate flawlessly with a fraction of the staff needed in the past. These cost-cutting innovations have also enabled many network marketing companies to pass a portion of their savings on to distributors. These are companies that have huge distributorships, yet extremely small in-house staffs and consequently very little in total overhead.

Today’s distributors are much more knowledgeable with regards to determining if a particular company offers a great opportunity to build a business around. In most cases, clues can be drawn from the type of distributor kit provided by the company. Regardless of the product line, experienced distributors know that companies providing kits that include nothing more than black and white photocopies are more than likely operating on a shoestring budget and would crumble under the weight of any real success. They also know to look for instructions on data entry. This implies that the company has automated processes as they empower the distributor to enter their own data directly to the company. This also indicates that the company has little overhead to interfere with generous commission rates.

Of course, distributors consider other elements when shopping around for a company, such as research on the founders, track record and corporate debt. However they are also making sure that network marketing companies are utilizing the profit enhancing tools of modern technology before investing time or money.

Remember technology, along with the desire to improve one’s standard of living, waits for no one, not even the big and powerful companies.